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Unformatted text preview: Exam One: Review Packet Chapter One: ________ Q: Which of the following statements is correct? a. A sole proprietor has no personal liability for debts of his business. b. There are far more corporations than there are sole proprietorships and partnerships. c. Revenue produced by corporations is much greater than that produced by proprietorships. d. It is very difficult for a corporation to raise capital. ________ Q: Which of the following is an example of an external user of accounting information? a. Marketing manager of the business. b. President of the labor union. c. Officer of the corporation. d. Production supervisor of the business. _______ Q: Which of the following is an investing activity? a. Borrowing money from a bank. b. Earning revenue from the sale of products. c. Incurring salaries expense. d. The purchase of a delivery truck. ________ Q: A business's earning of revenues is considered to be a(n): a. Operating activity. b. Investing activity. c. Financing activity. d. Balance sheet activity. ________ Q: Borrowing money from a bank is considered to be a(n): a. Operating activity. b. Investing activity. c. Financing activity. d. Balance sheet activity. ________ Q: Which of the following accounts will be found on an income statement? a. Revenues, expenses, and dividends. b. Revenues and expenses. c. Revenues, expenses, and cash. d. Expenses, dividends, and cash. _________ Q: Which of the following accounts will be found on a balance sheet? a. Accounts payable, cash, inventory. b. Cash, sales revenue, accounts receivable. c. Cost of goods sold, notes payable, common stock. d. Cash, wages payable, advertising expense. _________ Q: If revenues are $20,000 and expenses are $5,000, then the business: a. Incurred a net loss of $25,000. b. Earned net income of $20,000. c. Earned net income of $15,000. d. Incurred a net loss of $15,000. _________ Q: If beginning retained earnings is $15,000, net income is $6,000, and ending retained earnings is $20,000, how much did the company distribute in dividends? a. $6,000. b. $5,000. c. $4,000. d. $1,000. _________ Q: Which of the following is an appropriate date for a balance sheet? a. December 31, 2010. b. For the month ending December 31, 2010. c. For the quarter ending December 31, 2010. d. For the year ending December 31, 2010. _________ Q: Which of the following is the correct expression of the basic accounting equation? a. Liabilities = Assets + Stockholders' Equity. b. Stockholders' Equity = Assets + Liabilities. c. Assets = Liabilities + Stockholders' Equity. d. Assets = Liabilities - Stockholders' Equity. _________ Q: Assets total $14,000, stockholders' equity totals $9,000, and revenues total $6,000. What is the dollar amount of liabilities?...
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This note was uploaded on 02/02/2012 for the course ACCT I S 100 taught by Professor Kopsy during the Fall '11 term at University of Wisconsin.
- Fall '11